TECHNOLOGY
fundamental to a successful and efficient payroll process. The trick to getting the most from automation is to think big but start small, and really look at the process as something to build up over time. It’s not a one size fits all or a magic bullet. If it were, we’d have all done it by now. So, where to start? This is the number one question I get asked when I talk about automating the payroll process. To bring automation into your payroll, you need to look at the full end-to-end process with a critical eye, focussing on:
All the above are vital parts of a successful payroll, but it’s how we complete these tasks, or more importantly, how we, as payrollers, shouldn’t have to. How can we automate and pass the action back to others allowing us to just receive and use the information we need? “Automation isn’t only about groundbreaking technology and artificial intelligence, it’s about using the tools many of us already have in a more efficient way to get just a little more done for a little less effort” The importance of data We know for most payrolls, the data gathering part of the process is the biggest time burden. This is understandable because of the complex nature of individual employee data, but that doesn’t mean we should just accept that this as an area we can’t automate. All areas of payroll should be reviewed individually to find if some level of automation can be implemented to make continued gains. It’s important not to overlook the obvious items as well, as automation isn’t only about groundbreaking technology and artificial intelligence, it’s about using the tools many of us already have in a more efficient way to get just a little more done for a little less effort. If chasing up employees for data is something you spend a lot of time doing, then as well as having a quiet word with managers, look at opportunities to automate emails. Could you set up recurring emails which go the same time every week or month and remind everyone to submit, also alerting them to the impacts of late payroll data submissions? Create simpler channels of
communication to make sure the method of delivery is made easier for you. Could you request that all emails about payroll have a specific title or contain a certain word, so you can then create a rule which moves all those emails to one folder? This would mean you don’t have to spend time trawling through your inbox. These are just a couple of examples from outside your payroll and human resource software, but often the biggest opportunities will involve getting more from your systems, which are the direct processing tools for payroll. Many payroll systems can run automated payrolls. You can therefore tell them to complete a preset list of tasks, often for simple or fixed payroll data. But some might just do the close down tasks such as RTI, reporting, bank payments etc, all of which saves you time. As part of your payroll processes, do you have to report your figures and share them with the business? Can your software produce the reporting outputs and insights in a batch that can go directly to stakeholders or groups and inform them they’re ready again? These are just slight changes which could remove a task or two every payroll run, and over the course of a year, count towards quite a substantial time saving. So now you’ve decided to look at automation, what are the blockers? They will vary from stakeholder buy-in to technical capability in both systems and people, to risk and cost. It’s vital to get the buy-in from all areas that will benefit from automation, by showing them in real terms why it’s of interest to them / the wider business and subsequently, how this can translate into change and growth. So, don’t start with an expectation you’re going to change the payroll world, but set a sensible target based on facts. For a month or two, record all the steps you think you could remove, and how much time / cost that could save. Then also think about what you want to do with that time, as it could be a terrific opportunity to create insight for business decisions, work on process changes or even just have enough time to get payroll done within your actual working day. Automation isn’t a replacement of payroll roles, it’s an elevation of them. n
l areas of wasted time l duplication of effort l risk of errors. Online payslips have started to
dominate the methods of payslip delivery in the last few years. This is a huge leap forward in automation, not just from a security and technology point of view, but also from a waste removal perspective. Reproducing payslips for employees in any form is costly to businesses – for some, it could be worth thousands of pounds a year in lost time. If you reproduce ten / twenty payslips a month, each of which takes 15 minutes, this works out at over 60 hours a year. That’s £1,500 at a total rate of £25 per hour, and I’ve spoken to payrollers who can be doing five times that many a month. This is just one example. It’s not only the time spent doing the task but it’s also the time you’ll lose stopping whatever you’re doing and then getting back into it. This is why, when evaluating your processes for wasted time and effort, you must be as honest as you can. So, back to the question about where to start. Well, in simple terms, review every single item in your payroll run and make a diary or audit of all the tasks. This incudes not just the known ones around the processing reporting and outputs, but all the hidden tasks which burn time and create pinch points, tightening deadlines. Here’s a few we all come across but don’t record: l chasing colleagues for timesheets via email or calls l returning incorrect or incomplete data l asking managers for sign off on payroll items l checking data when someone starts or leaves.
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| Professional in Payroll, Pensions and Reward |
Issue 94 | October 2023
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